Printer Friendly

Headline inflation continues to slow down.

Kyiv: For the third consecutive month, headline inflation continued to slow down reaching 13.1% yoy in April 2018 (compared to 13.2% in March).

Inflation dropped from 1.1% mom in March to 0.8% mom in April, according to data from the State Statistics Service of Ukraine. Inflation in April came in slightly higher than projected in the April 2018 Inflation Report, driven by most volatile CPI components.

The NBU's tight monetary policy continued to restrain price growth. So far, the effect of the tighter monetary policy has mainly been transmitted through the exchange rate channel, prompting the hryvnia to strengthen since late January 2018. This in turn affected the prices of imported goods that have shorter shelf lives.

A further increase in production costs, including labor costs, and a rapid recovery in consumer demand kept inflation high. In addition, the prices of some imported non-foods reflected the weakening of the hryvnia exchange rate seen in late 2017 and early 2018, as these goods (e.g. spring and summer clothes and footwear) are purchased by retailers in advance. The high inflation expectations of some economic agents also contributed to the strong inflation pressure.

COPYRIGHT 2018 Plus Media Solutions
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Jun 14, 2018
Words:195
Previous Article:NBU Board adopts Resolution No. 51.
Next Article:New issue of research journal deals with practical issues.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters